Selling a House in BC 2026: Full Cost Breakdown on a $1.2M Sale

A notary can handle most residential resale transactions in BC at slightly lower cost than a lawyer. A lawyer is required for more complex transactions, including those involving foreclosure, court-ordered sales, or significant title disputes.

Mortgage Discharge Penalty

If the seller has an existing mortgage, the lender charges a discharge penalty for ending the mortgage early. The penalty depends on the mortgage type:

• Variable-rate mortgage: Typically, 3 months of interest. On a $600,000 balance at 5%, that is $7,500.
• Fixed-rate mortgage, more than 12 months remaining: Interest Rate Differential (IRD) calculation. Can range from $5,000 to $30,000+, depending on the rate at origination and the current posted rate. The big-bank IRD calculation is notoriously punitive.
• Fixed-rate mortgage, less than 12 months remaining: Usually capped at 3 months of interest.

Some lenders waive the discharge penalty entirely when the seller is also buying with the same lender (porting the mortgage) or refinancing. Always check this option before committing to discharge.

For variable vs. fixed math, see variable vs fixed mortgage in BC.

Property Tax Adjustment

At closing, the seller pays a prorated portion of the annual property tax for the days they owned the home in the calendar year. The buyer reimburses the seller for any property tax already paid that covers days after closing.

For a Metro Vancouver home with a $5,000 annual property tax, closing on July 1, the seller's tax obligation is half the year. If the seller has already paid the full year, the buyer reimburses the seller for the second half. If the seller has not yet paid, the seller is debited the first half at closing.

The adjustment can swing in either direction depending on when in the year closing happens.

Strata Adjustments

For strata properties (condos and townhouses):

• Prepaid strata fees: Sellers often pay strata fees a month or quarter in advance. At closing, the buyer reimburses the seller for the portion covering days after closing.
• Outstanding special levies: Standard BC contract makes the seller responsible for any special levy approved before the closing date, even if the levy is payable in instalments extending past the closing. Verify the levy status on Form B before listing.
• Form B fee: Typically $35 to $50, paid by the seller as part of due diligence delivery to buyers.

For details on strata levies and how they affect a sale, see Special Levy BC.

Home Staging

Optional but increasingly standard for high-end BC sales. Costs:

• Full empty-home staging (rental furniture for 1 to 2 months): $4,000 to $12,000 for an 800 to 1,500 sqft home.
• Occupied-home consultation with light styling: $500 to $1,500.
• Move-and-stage services: $2,000 to $5,000 for full move-out and staging.

Staging typically pays off in a higher final sale price and faster sale in mid-to-high-end Metro Vancouver markets. For sub-$700K condos in slower neighbourhoods, the return is less consistent.

Pre-Sale Repairs and Touch-Ups

Most sellers spend $1,000 to $10,000 on pre-listing repairs and cosmetic improvements. Common items:

• Painting: $2,000 to $6,000 for full interior paint on a typical Metro Vancouver home.
• Carpet cleaning or replacement: $300 to $4,000.
• Minor handyman repairs: $500 to $2,000.
• Professional cleaning: $300 to $800.

These are not strictly required, but accelerate sales and lift prices. Skipping them is fine if the home is already presentable and the seller is targeting a faster-than-aesthetic-clean sale.

Photography and Marketing

The listing brokerage usually covers professional photography and basic marketing as part of the commission. Sellers occasionally pay extra for:

• Drone footage or videography: $300 to $1,000.
• 3D virtual tour (Matterport): $200 to $500.
• Premium MLS listing placement: Often included or low-cost.

For waterfront, view, or unique architectural homes, drone and video pay off. For typical condos and townhouses, basic photos are sufficient.

Capital Gains Tax (Investment Property Only)

If the property is the seller's primary residence and qualifies for the Principal Residence Exemption, capital gains tax is fully sheltered. If the property is a rental or investment property, capital gains tax applies.

A BC investor selling a property bought for $600,000 and sold for $1.2 million faces a $600,000 gain. With the 50% inclusion rate on the first $250,000 and 66.67% on the remaining $350,000, the taxable portion is $358,333, taxed at the seller's marginal rate (often 45 to 53.5% at higher income brackets).

The bill on that $600,000 gain ranges from roughly $160,000 to $190,000, depending on the marginal rate. See capital gains tax on rental property BC for the full math, and Principal Residence Exemption BC for when sales qualify as primary residence.

Speculation Tax and Empty Homes Tax Clearance

For properties subject to the BC Speculation and Vacancy Tax or Vancouver Empty Homes Tax, the seller must confirm the property's status is current and that any outstanding tax is paid before closing. Outstanding tax becomes the buyer's problem if not cleared, so buyers' lawyers usually require proof of current status.

For details, see BC speculation tax and Empty Homes Tax Vancouver.

The Full Net on a $1.2M Sale

Example calculation for a typical Metro Vancouver sale at $1.2 million with a $500,000 mortgage balance and standard 4.5% commission:

• Sale price: $1,200,000
• Less commission (4.5% + 5% GST on commission): $56,700
• Less legal and conveyance: $1,800
• Less mortgage discharge penalty (3 months interest @ 5%): $6,250
• Less mortgage payoff: $500,000
• Less staging and pre-sale repairs: $5,000
• Net to seller: $630,250

Net before mortgage payoff (the "equity recovered" number): $1,136,250.

The numbers shift with mortgage balance, commission rate, and discharge penalty. A seller with no mortgage and a flat 2% commission netting on the same $1.2M home walks away with closer to $1,164,000.

Where Sellers Can Save

Three real ways to reduce the cost of the stack.

• Negotiate commission: A flat percentage of 4% instead of a tiered 7%/2.5% saves $10,000+ on a $1.2M home. Discount brokerages exist in BC. Quality of service varies; vet listing agents before signing.
• Port the mortgage instead of discharging: Moves the existing mortgage to the new property. Avoids the discharge penalty entirely if the new home is purchased within a tight window (usually 90 days).
• Sell in a faster timeline: Cutting carrying costs (mortgage interest, property tax, utilities, strata fees) by 30 days on a $1.2M home saves $3,000 to $5,000.

What does not work: skipping the lawyer, selling to family without documentation, or trying to avoid GST on commission. All three create larger problems down the road.

Bottom Line

Selling a $1.2 million Metro Vancouver home in 2026 costs the seller roughly 8 to 12% of the sale price in total transaction costs, dominated by realtor commission and any mortgage discharge penalty. The net to the seller before mortgage payoff is usually 88 to 92% of the sale price. Knowing every line of the cost stack before listing lets sellers compare offers accurately and avoid surprises at closing.

Run Zealty's home evaluation tool for an estimate of current value before listing, and browse Metro Vancouver active listings for current comparable sales and pricing trends.